Service Agreement for Private Healthcare Practices

What a good one includes

• A detailed breakdown of the specific clinical or administrative duties the contractor is authorized and expected to perform.
• Robust confidentiality terms that explicitly outline how patient data must be handled in compliance with healthcare privacy laws.
• Clear instructions on how billing is handled, who collects patient fees, and when and how the contractor will be paid.
• A clause clarifying that all patient medical charts, clinical notes, and practice branding remain the sole property of the clinic.
• A fair and defined process for how either party can end the agreement, including required notice timelines to ensure continuity of patient care.
• Explicit legal language confirming that the contractor is not an employee, preventing future tax and labor disputes.

Common mistakes to avoid

• Failing to clarify who owns the patient records and clinical charts when a practitioner decides to leave the practice.
• Using a generic business contract template that completely omits critical healthcare privacy compliance and HIPAA requirements.
• Misclassifying the relationship, which can lead to severe IRS or labor department penalties if a contractor is treated like an employee.
• Forgetting to include a non-solicitation clause to prevent contractors from actively recruiting your clients to their own private practices.

Frequently asked questions